Introduction to Manufacturing Accounting - Standard Costing
What you'll learn
- An introduction to Accounting in a Manufacturing Environment, and is based on International Accounting practices.
- This course focuses on Standard Costing for what we call 'Widget' type products.
- This course Includes a Case Study.
- We have also included an illustaration on an accounting software program.
- A good understanding of general accounting and book-keeping as this is an intermediate specialty course.
This course is an introduction to Accounting in a Manufacturing environment, where you wish to use Standard Costing for accounting for the costs of making the items. This might include for example: a lawn mower where each of a particular model uses the same amount of each type of material, components, nuts, bolts, and washers, wheels, paint, labour, sub-contracted services, packaging, and labour.
Students will learn about: Inputs including setting standards of what and how much we need of each item of material or service we need to make a unit and how much we should pay for each item of material or services.
We will address the different stages of accounting for purchases first placing into Raw Materials, moving to Work in Progress when the materials hit the shop floor, Finished Goods when we put the items on the shelf, and then Cost of Goods Sold when we finally sell it.
During the process we will evaluate how much we actually paid for each unit of input, and how much we actually used versus the budget or Standard, and how to properly account for the variances.
This course will also touch on Warranty using a method for setting up a fund to cover issues such as failures.
We also have a detailed bonus lesson on Overhead Allocation which is how we assign the costs of various divisions such as paint shops and engineering.
During this course we will look at a case study, and then have a demonstration on an Accounting software program. The practices taught are consistent with international practice including Canada, US, and Europe.
***Note: This is an intermediate specialty course therefore general accounting knowledge is required in advance. If you are uncertain or wish to take a refresher, please consider our course Introduction to Accounting.***
Who this course is for:
- Accounting technicians, book-keepers, and business owners who are engaged in a manufacturing organization.
- People who are well versed in accounting but are interested in expanding their knowledge into a manufacturing setting.
I have been a professional accountant for over twenty years, and have worked in public sector, not-for-profit, income tax audit, and private industry including manufacturing.
In addition to being an accountant, I served as a military aircraft mechanic for five years, and worked for three years as an operations manager with vocational trades training in the federal penitentiary system.
Adding to over twenty years of business administration experience, I also served for sixteen years as a volunteer firefighter and search and rescue technician.
Finally, I have experienced business ownership as a property investor and manager, and I am now sharing my experiences as a business author and course writer, bringing an integrated approach to business administration training.